GLOBAL AUTOMOTIVE EXHAUST SYSTEM MARKET
INTRODUCTION
Automobile regulations are becoming the center of focus amid growing global concern over environmental pollution. Exhaust system plays a crucial role in ensuring that exhaust gases are discharged smoothly so that the engine can run at complete potential. The other significant importance of exhaust system is to reduce the noise and reduce the temperature and pressure of exhaust gas. However, growing demand for electric vehicles will hamper the growth.
AUTOMOTIVE EXHAUST SYSTEM MARKET SEGMENTATION
By After Treatment Devices
- Diesel Oxidation Catalyst (DOC)
- Diesel Particulate Filter (DPF)
- Gasoline Particulate Filter (GPF)
- Exhaust Gas Recirculation (EGR)
- Selective Catalytic Reduction (SCR)
- Others
By Component
- Catalytic Converters
- Exhaust Manifold
- Exhaust Downpipe
- Sensors
- Mufflers
- Tailpipe
By Fuel Type
- Gasoline
- Diesel
By Vehicle Type
- Passenger Cars
- Heavy Commercial Vehicle
- Light Commercial Vehicle
- Two Wheeled Vehicles
By Geography
- US
- Europe
- China
- India
- ROW
AUTOMOTIVE EXHAUST SYSTEM MARKET DYNAMICS
In order to adhere to the increasing stringent regulations introduced by the governments across the world, manufacturers of exhaust system are focussing on research and development activities. Constant demand for fuel efficient automobiles is driving the market. Further innovations in various components to meet the emission control regulations will drive the market.
BY AFTER TREATMENT DEVICES
Based on the technology used selective catalytic reduction has gained highest market share due to its high fuel efficient technology and cost reduction. It is a relatively new technology and is able to reduce NOx emission by 70-80%. Other technologies such as DPF, DOC and GPF are used for filtering the harmful gases. However due to its inability to reduce NOx emission these are used along with the SCR technology. GPF (Gasoline Particulate Filter) among the 3 finds wider application due to increased number of gasoline run vehicles.
The below chart shows the market share of different after treatment types:
BY FUEL TYPE
Gasoline (petrol) holds the highest revenue share. The higher number of gasoline driven is one major factor. Along with that the higher amount of carbon emissions from diesel vehicles has led to its phasing out in major markets such as China and US.
BY COMPONENT
Catalytic converter occupies the highest share in the industry. The tailpipe segment is expected to gain larger revenue in the future.
BY VEHICLE TYPE
The passenger cars hold the major market share. The new regulations have led to continuous upgrade in the exhaust system of the cars. The rise of electric passenger cars will restrain the growth of the exhaust system in this segment. Commercial vehicles particularly heavy duty vehicles occupy the next highest market share.
US AUTOMOTIVE EXHAUST SYSTEM MARKET
The Tier-3 standard in US is the most stringent regulation in the world and it is fuel neutral i.e. same emission limits regardless any fuel.
Almost every top selling passenger cars in the region come with twin exhaust tailpipe. Thus, the tailpipe market substantially increases.
EUROPE AUTOMOTIVE EXHAUST SYSTEM MARKET
To meet the Euro 6 standards the automakers are considering incorporating the gasoline and diesel particulate filters for their respective engines.
Every top selling car in Europe features twin tailpipe considerably increasing the market share of tailpipe.
CHINA AUTOMOTIVE EXHAUST SYSTEM MARKET
China is the world’s largest heavy duty vehicle market and has planned to achieve soot free by 2021. In its national standard VI, it the DPF is made mandatory for new diesel heavy duty vehicles launched after July 2021.
INDIA AUTOMOTIVE EXHAUST SYSTEM MARKET
The Bharat Stage VI which went into effect from April 2020 has reduced the sulphur content to 10 ppm. This has provoked the automakers to install modern after treatment technologies such as SCR, GPF and DPF. The mandate to incorporate three way catalytic converters for petrol engines has led to surge in demand of catalytic converters.
AUTOMOTIVE EXHAUST SYSTEM MARKET SIZE AND FORECAST
The Global Automotive Exhaust System market accounted for $XX Billion in 2020 and is anticipated to reach $XX Billion by 2026, registering a CAGR of XX% from 2021 to 2026.
There are continuous R&D activities going on among the exhaust system manufacturers to reduce the weight of the system. This will boost the market in the future.
In China, in order to meet the emission requirements the palladium required for manufacturing catalytic converters has witnessed a surge in price by 25%. This will propel the manufacturers to develop an alternative for the component, thus boosting the market.
RECENT MARKET TREND
- Vitesco Technologies has developed electric catalyst heating technology which helps in reduction of emissions in high-voltage hybrid vehicles.
- The new DC/DC converter, the heating discs of the electrically heated EMICAT catalyst. The production is expected to begin in 2023.
- Tula’s Dynamic Skip Fire (DSF) developed a mild-hybrid diesel vehicle which was able to reduce CO2 emissions in a 2.3 liter 4-cylinder 48-Volt light commercial vehicle.
- In order to ensure that sufficient efforts to reduce and prevent emissions are deployed until 2030, the European climate law introduces a limit of 225 Mt of CO2 to target reduction of net greenhouse gas emissions (emissions after deduction of removals) by at least 55% by 2030.
- In anticipation of stricter emissions regulations and in order to improve air quality, Faurecia has developed the Electrically Heated Catalyst.In anticipation of stricter emissions regulations and in order to improve air quality, Faurecia has developed the Electrically Heated Catalyst.
- Eberspacher’s AVG2 acoustic valve is one third lighter and resistant to temperatures up to 750°C. The electric control allows the valve plate to be infinitely adjusted and enable active modification to a wide range of driving profiles.
- Walker Emission Control with its global brand DRiV, has developed a new replacement catalytic converter and muffler. Thus, extending coverage to more than 16 million vehicles in operation in North America.
- Eberspacher GmbH and Sharda Motor Industries have opened a new plant in Pune, to develop exhaust systems for commercial vehicles to meet BS-VI emission norms.
- Tenneco is supplying a new range of cold end exhaust systems to GM for its new Chevrolet Corvette Stingray 2020.
- Cummins and Tula technology has demonstrated to optimize the cylinder deactivation and thus reducing NOx emissions significantly.
- Continental has opened a combined production and storage facility in Trutnov, Czech. The plant is expected to develop sensors to detect NOx emissions
- Taicang Auto Parts, a Chinese subsidiary of Sejong Industrial, has reached an agreement with Chinese automaker to supply mufflers.
COMPETITIVE LANDSCAPE
BASF pioneer in the catalytic converter has developed various technologies for gasoline and diesel engines. Some of the being three way catalysts, four way catalysts, catalyzed soot filters and lean NOx traps. The three way catalysts are capable of removing over 90% of HC, NOx and CO emissions produced by passenger cars. The four way catalysts can remove all four major pollutants NOX, HC, CO and Particulate Matter in single technology.
The leading players in the automotive exhaust systems are BASF (Germany), Faurecia (France), Tenneco (US), Yutuka Giken (Japan), Benteler (Germany) and Sejong Industries (South Korea).
Some of the Chinese manufacturers are Harbin Emissary and Chongqing Height.
Boysen is working on its Euro 7 gas heat management system
COMPANY PROFILE
- Tenneco
- Faurecia
- Futaba Industrial
- Eberspacher
- Yutuka Giken
- BASF
- Boysen
- Benteler
- Sejong Industrial Co Ltd
- Bosal
- Harbin Emissary Green Automobile Exhaust Systems
- Chongqing Height Environment Group
- Sango Co Ltd
